Officially At The Table When the Middle East peace talks resume, for the first time Israel and the PLO will be directly negotiating. DOUGLAS DAVIS FOREIGN CORRESPONDENT Warren Christopher meets in Syria to try to revive stalled peace talks. nce again, Yassir Arafat appears to have done what he does best: plucking victo- ry from the jaws of defeat. This time, the irony is that he accomplished the feat with the active support of the Israeli government. Jerusalem's contribution to Chairman Arafat's latest lease on life was a state- ment last week by Foreign Minister Shimon Peres that Israel would continue to negotiate with three key Palestinian delegates to the Middle East peace talks, despite their having been given formal positions in the PLO hierarchy. "It makes no difference to us," Mr. Peres told journal- ists. "They're the same dele- gation members, the same names, the same people, the same procedure. We're also aware of the fact that prior to this they also consulted whomever they consulted." Mr. Peres' comments were a reference to the thin- ly veiled charade that saw delegates Hanan Ashwari, Faisel al-Husseini and Saeb Erekat repeatedly flying off to Tunis to consult with Chairman Arafat — while Israel continued to officially insist that it would not negotiate with the PLO. But now the veil has been lifted because the three were given official PLO posts by Tunis after they threatened to resign as mediators, ostensibly because of their frustration with Chairman Arafat and the PLO leadership. Some commentators regarded the threatened resignations as a carefully contrived ploy to force Israel into taking another step down the road to direct talks with the PLO. Others, however, saw it as a symptom of growing frustration at the PLO's chaotic financial steward- ship, which has caused widespread suffering and transformed delegation members into lightning rods for the anger that has been generated among the Palestinian inhabitants of the West Bank and Gaza Strip. Regardless, last week's development ended that pretense for all time. Israel is now dealing directly with the PLO, its long-time enemy. Further evidence of this also came last week when a spokesman for Prime Minister Yitzhak Rabin acknowledged that Environment Minister Yossi Sarid had met senior PLO executive Nabil Sha'ath in Cairo with Mr. Rabin's prior knowledge. Former Prime Minister Yitzhak Shamir, who led the Likud government, was among those who were high- ly critical of the Labor gov- ernment's moves. Mr. Shamir told journalists in Israel hopes that dealing with the PLO will blunt extremist Palestinians aligned with Muslim fundamentalist groups. Israel that the PLO remains a "murderous organization" and that Mr. Rabin's gov- ernment was destroying "walls" that he had sought to create between the PLO in Tunis and Palestinians in the territories. But according to a senior Israeli • official, it was "politically necessary" for Israel to start dealing with Tunis at this time because — while the PLO is reviled among the Palestinian masses for their current hard- ships — its overt support for the peace process is providing "essential credibility" for the Palestinian delegation. "The Palestinian leaders in the territories and the PLO leaders in Tunis are experiencing a crisis of legitimacy," the official said, "and it is considered expedi- ent to ignore the cosmetic changes to improve their standing in the Palestinian street." Moreover, in comparison with Hamas' fanatical Islamic fundamentalists who are willing to kill and be killed in their crusade against the peace process, the old terrorist Arafat is increasingly perceived as a moderate and the Israeli official conceded that there is now an inexorable drift toward direct talks between Tunis and Jerusalem. "I believe it is now inevitable," he said. "You can see the signs of this emerging every day." Whether by contrivance or coincidence, all this has enabled Chairman Arafat to surmount, at least tem- porarily, his diminished standing with the Palestinian masses, stem- ming in large part from the PLO's disastrous financial PEACE TALKS page 60